Unit 1 Quiz

1.

1 point

How are rules related to incentives?

Rules are made to enforce incentives.

Rules have nothing to do with incentives.

Rules are designed to eliminate incentives.

Rules influence personal incentives.

2.

1 point

People usually trade with each other when:

They think they wil be worse off after making a trade.

They feel they will be better off from making a trade.

They don't know what to expect from making a trade.

They predict that the costsof trading will be greater than the benfits.

3.

1 point

Making a choice means:

Deciding among many possibilities.

Not thinking of future consequences.

Being able to get everything.

Considering your daily horoscope.

4.

1 point

An incentive is:

A fictitious animal that exists only in fables and fairy tales.

A reward you wish to receive.

A sacrifice above and beyond the call of duty.

A fancy desserth that you can order at elegant restaurants.

5.

1 point

High school football players turn out for practice on a daily basis; they endure tough physical workouts and get sore muscles and bruised bodies. The personal incentive for choosing to do this most likely would be:

Acclaim, stature, and prestige.

Toil, pain, and hardship.

Money, profit, and financial well-being.

safety, insurance, and security.

6.

1 point

How are incentive related to coices?

Incentives motivate people to make certain types of choices.

Incentives make it difficult to predict what choices people will make.

Incentives rarely influence personal choices.

Incentives have nothing to do with choices

7.

1 point

A rule is:

A shape, a size, or a volume.

A law, a guideline, or a regulation.

A greeting, a beginning, or an introduction.

A country, a state, or a nation.

8.

1 point

People throughout the world usually make choices:

Randomly--leaving the outcome up to chance.

Generously--thinking of the needs of others.

Purposefully--considering costs and benefits.

Impulsively--chosing quickly without much thought.

9.

1 point

Recently, Joe's company change its rules. The company now allows Joe to obain a certain number of DVDs each month and keep $10 for each DVD he sells. Also, the new rules state that Joe must pay the company for every DVD he obtains but does not sell by the end of the month. Joe's incentive is profit. He still wants to make as much money as possible. Joe will most likely choose to:

Obtain exactly as many DVDs as he thinks he can actually sell.

Obtain more DVDS tan he thinks he can sell.

Retire

Obtain fewer DVDs than he thinks he can sell.

10.

1 point

Joe is a salesperson for a company that makes DVDs. Company rules allow Joe to obtain DVDs each month, and he is paid $10 for every DVD he orders from the company. He can keep the money even if he doesn't sell all the DVDs. Joe's incentive is profit. He wants to make as much money as possible. Joe probably will choose to:

Find a different way to make a living.

Obtain more DVDs than he thinks he can sell.

Obtain exactly as many DVDs as he thinks he can actually sell.

Obtain fewer DVDs than he thinks he can sell.